LABOUR’S POLICY

Nelson Evening Mail, Volume LXXII, 7 November 1938, Page 11

LABOUR’S POLICY

PLANS FOR FUTURE TAXATION REVISION PRIME MINISTER S OUTLINE An outline of the Government’s immediate plans for its new term of office was given by the prime Minister (the Rt. Hon. M. J. Savage) in an interview on Saturday. “The first thing we have to do is to establish ourselves where we are,” said Mr Savage; “that is, to secure ourselves. We are like an army —it is no use reaching a particular point unless you can hold it. To be pushed back is not helpful, and our job is to consolidate our position.”

Touching cn the question of taxation revision, Mr Savage said that this was a subject which was uppermost in the minds of the Government. “No one in their wildest dreams can say that the present incidence of taxation is right,” he said. “It is a long way from being right. People have asked why we have not altered it. seeing that we had been in office for three years. I want to point out that other Governments have been in office ever since we were a self-governing country, and they did not put it right. All they really did was to establish the position we find ourselves in to-day, and we all admit it is wrong. It will require legislation. We cannot afford to close our eyes and just rush ahead; we must see where we are going.

“We want to make it quite clear to those who have money to invest that it is our job to see that it is not driven overseas. That is a pure economic problem; it is not a question of 1 i litics or advanced ideas. It is just plain fact.

“If people spend long years earning money in New Zealand by investment or otherwise, and feel that things are insecure in New Zealand and are inclined to shift it overseas, then there is something wrong with them and us. too, and it is our job to see that it is put right. Whatever is necessary to make people feel that their funds and livelihood are secure in New Zealand has to be faced up to by the Government.

NOT ROUND THE CORNER "There are people with no responsibility in the matter who think that there is a short cut to the millennium. Personally, I have had a lot of experience. and have spent many years of my life as a propagandist looking forward to the time when a beginning could be made in the direction of making the people feel secure and free, but I never did believe that the millennium is just around the corner. We have to move carefully, and see where the next step is going to land us. Unless we do that it is more than even money that disaster is ahead. We cannot afford to take chances lightly.” The Prime Minister emphasised that there was room for expansion in production in New Zealand everywhere. “The position is not satisfactory,” he said. “We have to produce more, and the people must have an opportunity to produce more, both in respect of primary and secondary industries. We must have a better balance in production. Up to the present time we have not made the progress necessary to keep ourselves properly balanced, financially and economically.” ROOM FOR EXPANSION Mr Savage said that they had to make the man on the land feel secure, and to remove the disabilities under which he worked in the past. The manufacturer also had to feel that there was room for expansion. The importers had to be considered also. New Zealand had to make the manufacturers in Britain feel that it was ready to deal with them, goods for goods. Otherwise they were bound to have dissatisfaction, and the balance in the wrong direction. They had to have something approaching a balance in trade; that was the objective of any intelligent Government The Government wanted the co-operation of the manufacturers in building New Zealand’s secondary industries. Then there were the wage-earners. They represented the majority of the people. “We cannot build up industries and we cannot give a fair run to investors unless the wage-earner also gets a fair run at the same time. It is a question of organisation. “Excuses will not remove the responsibility from the shoulders of the Government. I will not side-step any of it, and will take my fair share of responsibility. We must help the people to help themselves and the great bulk of humanity in this country. Whatever differences of opinion we may have from time to time on matters of details, that is the objectve of the party. It canot be any other.” The Prime Minister mentioned resolutions that had been passed from time to time protesting against Government interference with business. “I say definitely that no Government has any right to interfere when things are running smoothly and economically in industry,” said Mr Savage. “It is only when they are not running smoothly that the Government should be asked to step in and give assistance. It must be remembered that every time the Government steps in it increases its liability, and no one would do that in a sane moment, whether a Government or an individual.”

He added that the Government would face up to any legislation required without fear, and the ground would be properly surveyed before any legislation was attempted.

POSITION OF FARMERS Dealing with the guaranteed price and production generally, the Prime Minister said that there were a number of wool growers who were unhappj' about their position to-day. Before he had been long in office some wool growers asked him whether the Government intended to interfere. They said they were doing all right, and he asked them why the Government should interfere. “1 told them that the time may come when they may come to us for some relief, just the same as the dairy farmers receive. That time may come, and it will be time enough for the Government to come into the picture. We have had numerous representations from individual wool farmers for a guarantee, but we can deal only with organisations. Our job would be to come in and try

to help them—not to inflict anything on them against their will.”

Mr Savage said that production must be carried on in’ New Zealand on the most advanced lines, and there must be security for those engaged in industry, and that meant owners as well as workers. "We cannot separate them,” he added. “They will sink or swim together. The problems of all classes must be listened to. with a view to assistance being given.”

Asked whether the dairy farmers would be given an opportunity to vote on the question of whether they desired the guaianteed price policy to be continued. Mr Savage said the speculator interests did not want guarantees. They lived by fluctuating markets. That had been the position of the dairy industry over the years. It was true in respect to the land speculator also, who only wanted to see fluctuations. With a guaranteed price there was less opportunity for the speculator. Before the guaranteed price came into operation there was a class in the community who farmed the farmer.

“I hope I will never run up against the man who thinks that prosperity can come by the worker working long hours at low wages.” added Mr Savage. He thought there should be a greater percentage of people engaged directly in industry. The manufacturer as well as the farmer had to be considered. If the Government was at fault in any circumstance, it would have to make a readjustment. The Government’s task was to have industry expanded as well as to expand the standard of living.